WHILE ascertaining that it will be business as usual (BAU) for capital market participants (CMPs) during the total lockdown period from Jun 1-14, the Securities Commission (SC) will only consent the staging of fully virtual annual general meetings (AGM) during the period.
In so doing, the SC has updated its Guidance Note on the Conduct of General Meetings for Listed Issuers (Guidance Note).
This means that companies need to update/amend their notices of AGMs and to swiftly inform their shareholders on the change from physical to virtual mode to comply with the latest ruling.
Company needs to update/amend notice of AGM on the change of mode to virtual, from physical and swiftly inform shareholders on the change.
“Participants at a fully virtual general meetings include chairperson of the meeting, board members, senior management and shareholders,” the market regulator pointed out.
“Any queries relating to the Guidance Note can be channelled to [email protected]. “Further, listed issuers and CMPs are prohibited from conducting any physical meetings or gatherings, irrespective of the number of participants involved.”
In a related development, the SC has also affirmed that the capital market will continue to remain open and operate as usual within normal business hours. Likewise, CMPs being essential service providers can continue to provide capital market activities and services.
The CMPs encompass entities that include approved exchanges, licensed entities (CMSL holders), registered persons, registered auditors of the Audit Oversight Board, self-regulatory organisations, recognised market operators and other capital market-related entities.
Nevertheless, the SC reminded CMPs to minimise their workforce capacity in the office to support the Government’s efforts to break the chain of COVID-19 transmission during this critical lockdown period.
“Under the updated SOPs for the capital market issued by the National Security Council (MKN), CMPs must ensure that their employees working at the office is capped at 60% during this period,” cautioned the SC.
“CMPs are required to have in place clear criteria and processes to ensure compliance with the SOP requirements as well as maintain complete and updated record of employees working at the office and at home which must be made available to the SC upon its request.”
Additionally, CMPs are required to request new verification letters from the SC to enable their employees to travel to work during this period.
CMPs who require verification letters can email their request to the SC at [email protected]. – May 31, 2021
